Question

The statement of cash flows for the year ended December 31, 2014, and other data for Bradley Corporation are shown below:

Additional data:a. Bradley’s Dividends receivable account decreased by $2,000 during the year.b. The Machinery account, net of accumulated depreciation, increased by $100,000 during the year. The only other transaction, exclusive of depreciation, was the write-off on May 15, 2014, of obsolete machinery that had a book value of $8,000.c. Accounts receivable increased by $40,000 during 2014. The Allowance account increased by $4,000. There were no write-offs of uncollectible accounts.d. Salaries payable at the beginning of the year were $6,000; at the end of the year, $10,000.e. Inventories decreased $12,000 during 2014.f. Taxes payable increased $6,000 during the year.g. The investments that were sold had a book value of $30,000.

Required:On the basis of the above data, prepare Bradley Corporation’s single-step income statement for the year ended December 31,2014.